Know Your Customer is the key principle for identification of any individual/corporate  opening an account. 

KYC Process: 

At present, the KYC process for clients in the securities market is undertaken by SEBI  Registered Intermediaries (RI). Presently, clients can complete the process of KYC with RI  through either of the following ways: 

  1. a) Online/App based KYC  
  2. i) wherein the investor visits the website/App/digital platform of the RI and fills up the online  KYC form and submits requisite documents online using any of the Officially Valid  Documents (OVD)(i.e., Aadhaar or Non-Aadhaar OVD).  
  3. ii) e-KYC authentication using Aadhaar as OVD.  
  4. b) Physical KYC wherein client approaches the RI and submits the requisite documents  physically along with any of the Officially Valid Documents (OVD)(i.e., Aadhaar or Non Aadhaar OVD). 

After completion of KYC, RI uploads KYC record to KRA and CKYCR. The role of KRAs  inter-alia is centralization of the KYC records, ascertain the KYC documents uploaded by the  intermediary and share KYC records with other intermediaries as and when required. The  responsibility of conducting the KYC and maintenance of records rests with the Intermediaries  and KRA is not required to verify/validate the credentials of the documents/ information  uploaded by the intermediary. 

framework for validation of KYC: 

In order to make the process of carrying out KYC of clients in securities market more robust,  and to ensure end to end secured process (for example, through carrying out Aadhaar  authentication, independent OVD/PAN validation, document safekeeping, technological  innovations, standardization, cyber security norms etc.), it is proposed that the KYC  information of clients be independently validated by KRAs. 

During the process of validation, KRAs shall validate the following details:  

  1. a) Aadhaar through Unique Identification Authority of India (UIDAI)  authentication/verification mechanism.  
  2. b) Mobile number and e-mail ID using OTP validation (only in cases where mobile number  and e-mail ID provided by client are not seeded with Aadhaar)  
  3. c) PAN using the Income Tax Database. 

The intermediary shall perform the initial KYC/due diligence of the client, upload the KYC  information with proper authentication on the system of the KRA, furnish the scanned images  of the KYC documents to the KRA, and retain the physical KYC documents 

When the client approaches another intermediary subsequently, the intermediary shall verify  and download the client’s details from the system of KRA Provided that upon receipt of  information on change in KYC details and status of the clients by the intermediary or when it

comes to the knowledge of the intermediary, at any stage, the intermediary shall be  responsible for uploading the updated information on the system of KRA and retaining the  physical documents. 

The intermediary shall have the ultimate responsibility for the KYC of its clients, by  undertaking enhanced KYC measures commensurate with the risk profile of its clients. 

When a new client approaches for account opening, Sunflower Broking shall capture client’s  KYC related information and upload the same onto the online system or App of any of the  KRAs along with the KYC documents i.e Proof of identity (PoI), Proof of Address (PoA),  PAN, KYC form and other supporting documents.  

KRA shall then independently validate the Aadhaar, PAN, Mobile number and email ID (if  provided by client) uploaded by us. Once validated, KRA identifier shall be generated by KRA.  RI shall allow the activities in the investment/ trading account of the client only after generation  of KRA identifier. 

When a client, who already has a CKYCR identifier, approaches RI for account opening, RI  shall download KYC data from CKYCR and upload the same on KRA system for independent  validation by KRA (if KYC is done using Aadhaar as an OVD). If there is change in client’s  KYC information as downloaded from CKYCR, RI shall update the KYC data on KRA and  CKYCR. Once validated, KRA identifier shall be generated by KRA. RI shall allow the  activities in the investment/trading account of the client only after generation of KRA  identifier. 

If there is any change in client’s KYC information as downloaded from KRA, RI shall update  the KYC information on KRA and allow the activities in the investment/trading account of the  client only after validation by KRA. In this case, RI shall also upload the updated details onto  the system of CKYCR. 

Advisory – KYC Compliance: 

✓ 6 KYC attributes viz Name, Complete address (including PIN code No. in case of address  of India), PAN, valid Mobile number, Valid email-id, Income details/range and details of  custodians for the custodian settled clients has been made mandatory for Investors.  

✓ In instances, where the aforesaid 6 KYC attributes are not updated, the trading accounts  would be considered as non-compliant and would not be permitted to trade at the  Exchange. 

✓ To ensure smooth settlement, the investors are requested to ensure that both the trading  and demat accounts are compliant with respect to the KYC requirement. ✓ Investors are required to ensure that they comply with the requirement of linking their  Aadhar Number with PAN by March 31, 2023. Investors whose PANs are not seeded with  their Aadhar Numbers by March 31, 2023 shall not be permitted to trade w.e.f. April 01,  2023 as their PANs shall be rendered inoperative.  

Account Opening General Guidelines:

✓ In order to open an account, the investor needs to fill up KYC Application form (if not  KRA compliant) and Additional KYC form for opening a demat account as per the  format provided. 

✓ Self-attested copy of PAN card is mandatory for all clients 

✓ Copies of all the documents submitted by the applicant should be self-attested and  accompanied by originals for verification.  

✓ If any proof of identity or address is in a foreign language, then translation into English  is required. 

✓ Name & address of the applicant mentioned on the Know Your Client (KYC)  Application Form, should match with the documentary proof submitted. ✓ If correspondence & permanent address are different, then proofs for both have to be  submitted 

✓ For non-residents and foreign nationals, (allowed to trade subject to RBI and FEMA  guidelines), copy of passport/PIO Card/OCI Card and overseas address proof is  mandatory. 

The investors are hereby requested to comply with the regulatory guidelines issued by  Exchanges and Depositories from time to time with regard to KYC compliance and related  requirements. 

PROCEDURE FOR ACCOUNT OPENING 

Receipt of Physical Forms 

 Make entry in INWARD register 

Documents Verification (Checking form with documents)

Verification of Pan Card with Income tax website

 Complete forms are given to account opening.

Prepare documents set and Signature scanning

Punch the Data in back office for opening an a/c (Maker Chaker  process) 

Verification punched data and upload file on CDSL server for  opening a Demat Account 

UCI Registration Process in Respective Exchange – NSE,BSE,MCX.  Email of KYC Codes for mapping 

MSG TO CLIENTS 

Process of CKYC registration 

Scanning the documents  

Paunch the data under back office for CKYC registration and  upload 

Process of KRA registration 

Scanning the documents  

  

Paunch the data under back office for KRA registration and upload  file on CVLKRA site 

 Make Entry in records file 

 Filling and labeling